With scalability issues being witnessed in some of the most popular and widely used cryptocurrencies in the market like Bitcoin and Ethereum, it is the duty of the research and development wing of the Blockchain industry to put their innovative minds to use, and try to find out an alternative currency without the current drawbacks. Otherwise, the aim of introducing a globalized cryptocurrency which would serve the requirements of each and every individual without any delay would just be left as a dream itself. Due to the open source code nature of the cryptocurrencies, it has been made easier for the developers, to incorporate the existing cryptocurrencies and apply their own concept and develop a whole new cryptocurrency, based on certain modifications, but it highly difficult for people to keep shifting to new cryptocurrencies, even though it might be better than the previous version. It is also obvious in one way, as big changes take their own time for their widespread adoption. Let us understand what was the need for Siacoin?
In this online world of social media, where each and everyone is obsessed with clicking pictures, the storage has always been a catch. Therefore the Siacoin project aims at developing a decentralized cloud storage system where the participants on the Blockchain would lend out their unused storage space for its community members to use. The whole process is made possible through by the application of smart contract functionality where the conditions are automatically enforced through them. The client node which stores the data, however, would be required to repeatedly submit a Proof of storage in order to ensure that the data is safe on the client’s computer.
Siacoin project’s main goal is to develop an affordable, reliable, and highly secure form of data storage without any fault-tolerant features. The current prices charged by the centralized cloud storage services is skyrocketing, hence the project cuts down the cost by a number of times, adding on to that providing more security and reliability through its blockchain nature has improved the coins value.
Through the Cryptographic principles applied by the Blockchain technology, the data will be completely safe and secure in the makeshift client servers. As the Siacoin concept is decentralized, a single point of failure which existed in the in case of the traditional centralized storage cloud storage facilities is completely avoided. The Siacoin cryptocurrency project is highly similar to that of Bitcoin where is the cryptocurrency coin Siacoin is inherently meant to be deflation-proof. The cryptocurrency project is also well known as the “Airbnb of the hard drives” as it sets out to give a major blow to the centralized projects like Google Drive, Dropbox, Amazon A3, etc.
As the whole data stored on a particular node would be encrypted and can only be unlocked by using a private key even the Siacoin network wouldn’t be able to decipher the content, in order to direct the respective advertisement traffic towards you. Any particular user around the world who needs to use the Technology must become a part of the network first.
There is a minimum requirement for the amount of cryptocurrency coin one needs to hold in order to rent out space towards the Blockchain network. Currently, it is 2000 Siacoins. This holding of coins ensures the adoption of the cryptocurrency but due to technical ambiguity among people, it is hard for it to become a mainstream obsession. It is always witnessed that nature somehow balances managers to balance itself and in this case imagine in future if it experiences a widespread implementation, then the price of Siacoin would impede and again the system would become unaffordable.
As Siacoin provides a fault-tolerant decentralized cloud storage computing facility at enormous cheaper rates than the current market price it would undoubtedly be impressed by huge amounts of people a large number of people. Even the value of the coin is bound to increase due to its increasing adoption. Hence it seems to be a great investment asset that one must be incorporating into the portfolio for the year 2018. It is in some way carrying forward the legacy of BitTorrent, the most powerful file sharing mechanism which couldn’t be shut down in years by the government due to its decentralized nature. The overall working model of Siacoin seems to be highly promising, but it is the user’s money and hence is completely their decision to invest in the cryptocurrency or not to.